The following article, Stocks Take A Nosedive After Trump’s Coronavirus Address Scares Investors, was first published on Flag And Cross.
The stock market once again took a severe plummet after President Trump’s coronavirus speech Wednesday night failed to assuage investors’ fears about the spread of this awful illness that is currently making its way across America.
The Dow Jones Industrial Average dropped a whopping 7.43 percent which resulted a loss of 1,749 points upon opening.
Here are more details from The Washington Examiner:
The S&P 500 and Nasdaq composite were also down at opening, 6.62% and 6.49%, respectively.
At the market opening, the price for crude oil is down by more than 7% and trading at roughly $30 a barrel.
Before opening, the stock futures indexes hit the so-called limit down threshold by dropping more than 5% before recovering.
The market fallout will likely prompt the Federal Reserve to cut interest rates at its next meeting, on March 17 and 18, predicted Greg McBride, chief financial analyst at Bankrate.com.
McBride also said, “The Federal Reserve will be compelled to cut interest rates further, likely all the way to zero, but more important will be the steps they take to provide liquidity and assure proper functioning of markets. That is critical to preventing the economic and financial fallout going from bad to worse.”
During Trump’s coronavirus address, the president said that the outbreak is not a “financial crisis” and then told the Small Business Administration to ensure that capital and liquidity are available for companies that are affected by COVID-19.
Trump also imposed strict travel restrictions on Europeans entering the country as a means to prevent the further spread of the virus to American citizens.
The president has also instructed the Treasury Department to defer tax payments without interest or penalties for specific individuals and businesses who get negatively impacted by the virus.
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